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Buying First Home Advice

August 31st, 2017 7:22 AM by Jackie A. Graves

The first asset carries a vital importance to the holder; the case is no different when it comes to home ownership. Renting a house for the whole of your life is one of those things which every person wants to get rid of as fast as possible. However, the obsession of owning a house should not be the basis of taking miscalculated moves in respect to your finance. Financial miscalculated moves can lead to loss of all your assets including the home you just bought.

Thus, while buying a first home, you will be required to exercise extra caution to avoid losing your money either through scam or buying overvalued homes.

 

The factors to consider before making your first home purchase

Check the inspection certificate

A home is a collection of various items, and it cannot be defined as a single entity. Thus, to get the actual value of your prospective home, you will need to look at the inspection certificate to get the working condition of items installed in the house, the quality of electricity system, roofing structure, exterior design and the prevailing market value of that particular location.

If you cannot get the inspection certificate from the seller, you can take the initiative and hire a home inspector to do it for you. Adopting these measures will save you the cost of buying a home at inflated prices or a poorly conditioned home. Check the status of all installed cabinets, shelves, corner desk with storage, and every tangible thing in the house. All of them count towards the final value of the home.

Check the home warranty conditions

Most home sellers undertake to absorb any maintenance or damages which occur in the home within one year. Thus, while making a purchase decision, consider those that provide a guarantee that they will be in charge of any defects noted in the home within one year. These assurances give you the chance to try the new home risk-free.

Get the total purchase cost estimates

Since buying a home is a capital expenditure, it requires you to put every aspect of spending into consideration. Accumulate all the mortgage fees, inspection costs, survey costs, valuation costs, stamp duty, and any other legal fees involved with the purchase. The biggest mistake you can do is assuming these costs since they are quite significant and absorbing them without budgeting for them can lead to financial strains.

Analyze your financial status

Everybody wants to own home, but you should only undertake the project at the right time. Put logical reasoning into consideration and plan your budget well. If you are in deficit, postpone the purchase or look for another source of financing to top up the shortage. Never commit to a home purchase project if you cannot fully finance the purchase because you might end up losing your deposit and other related costs like valuation and inspection. Only buy when you have the money at hand.

Consult the real estate agents

Information is power, and some of the parties who have all the information of your home are the agents. They know the prevailing market rates as well as the loopholes to avoid while making a genuine offer. They also know the bargaining aspects while buying a house and what to look out for in a quality home. Hiring such an agent can save you a lot of money in the long run.

Ask the punch list or related documentation

It is always good to know both the desired and the undesired elements in what you are buying. The punch list will show what has been repaired and when was it repaired and for what reason. These things will enable you to readily accept the defects that may arise in the future.

Conclusion

Buying a first home is a decision which requires a thorough consideration; even with your home you will be required to have some monthly recurring costs like taxes and other maintenance activities. Thus, compare the marginal cost of renting in comparison to buying, and if the difference is minimal, it might be wise to consider investing in more current businesses to maintain and increase your cash flows.

However, under a majority of the conditions, the benefits of buying a home will always outweigh the costs of renting. Thus, it can be conclusively stated that it is better to buy a home rather than to rent but consider the relevant factors.

By Margaret Horton - To view the original article click here

Posted by Jackie A. Graves on August 31st, 2017 7:22 AM

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